Question

2. Archana invests 5,600 at 14% p.a. compound
interest for 2 years. Calculate:
(i) The interest for the 1st year;
(ii) The amount at the end of the 1st year;
(iii) The interest for the 2nd year, correct to
the nearest .​

Answer 1

Answer:

According to the question,

P = Rs. 5600, N = 2 years, R = 14% p.a.

A = begin mathsize 16px style straight P open parentheses 1 plus straight R over 100 close parentheses to the power of straight N equals 5600 open parentheses 1 plus 14 over 100 close parentheses squared end style

A = Rs. 7277.76

Interest = A - P = 7277.76 - 5600 = Rs. 1677.76 ≈ Rs. 1678